This document discusses key concepts in international human resource management (IHRM). It defines IHRM as covering all issues related to managing people in an international context. The document outlines differences between domestic and international HRM, noting IHRM involves more complexity due to factors like more HR activities, a broader perspective, and greater involvement in employees' personal lives. It also discusses variables that can moderate differences between domestic and international HR practices, such as culture, industry, and senior management attitudes.
This document discusses key concepts in international human resource management (IHRM). It defines IHRM as covering all issues related to managing people in an international context. The document outlines differences between domestic and international HRM, noting IHRM involves more complexity due to factors like more HR activities, a broader perspective, and greater involvement in employees' personal lives. It also discusses variables that can moderate differences between domestic and international HR practices, such as culture, industry, and senior management attitudes.
This document discusses key concepts in international human resource management (IHRM). It defines IHRM as covering all issues related to managing people in an international context. The document outlines differences between domestic and international HRM, noting IHRM involves more complexity due to factors like more HR activities, a broader perspective, and greater involvement in employees' personal lives. It also discusses variables that can moderate differences between domestic and international HR practices, such as culture, industry, and senior management attitudes.
This document discusses key concepts in international human resource management (IHRM). It defines IHRM as covering all issues related to managing people in an international context. The document outlines differences between domestic and international HRM, noting IHRM involves more complexity due to factors like more HR activities, a broader perspective, and greater involvement in employees' personal lives. It also discusses variables that can moderate differences between domestic and international HR practices, such as culture, industry, and senior management attitudes.
attribution Attribution in this presentation: all figures come from Peter J. Dowling, a.o., International Human Resource Management, South-Western Cencage Learning, 2008, ISBN 978-1-84480-542-6, unless mentioned otherwise.
Objectives Define key IHRM terms Review expatriate management evolution Outline differences between domestic and international HRM Discover the increasing complexity and potential challenges of current IHRM
A definition of IHRM We define the field of IHRM broadly to cover all issues related to the management of people in an international context. Hence our definition of IHRM covers a wide range of human resource issues facing MNCs in different parts of their organizations. Additionally, we include comparative analyses of HRM in different countries. Stahl and Bjorkman, page 5, Chapter 1.
Defining HRM An organizations HRM activities include: 1. Human resource planning 2. Staffing (recruitment, selection, outplacement) 3. Performance management 4. Training and development 5. Compensation (remuneration) and benefits 6. Industrial relations
Human resource planning
Recruitment & Selection
Performance management
Renumeration
Training & Development
Differences between domestic HRM
and IHRM The complexity of IHRM can be attributed to six factors: 1. More HR activities 2. The need for a broader perspective 3. Move involvement in employees personal lives 4. Changes in emphasis as the workforce mix of expatriates and locals varies 5. Risk exposure
6. Broader external influences
from SWOT to Strategy
Implementation of Strategy corporate governance organizational structure coordination and control leadership entrepreneurship innovation change and sustainability
approach and focus
Suitability, does the strategy address the key issues? Acceptability, will the strategy achieve an acceptable return, reasonable level of risks? Feasibility, can the strategy be pursued within the resources, capabilities and competences of the organization?
opportunities international strategy
Internationalization causes differences in costs/risks Exporting high cost and low risk Licensing low costs and high risk Strategic alliances shared costs and shared risks, but having problems of integration and therefore control Acquisitions rapid, high cost and high risk The establishment of a new subsidiary also high cost and high risk, greater opportunity for management control and above average returns
determinants of national advantage
Determinants of national advantage
Factor conditions labor, land, natural resources, financial capital, infrastructure Demand conditions demand for basic and advanced goods and services in the home market Related and supported industries important networks of suppliers, buyers, services Firms strategy, structure and rivalry some places in different countries are the location of choice for particular industries, products, services
viability of the firm
framework for thinking flexibly about
culture Unitary and unique organizational culture Organizations as meetings points of fields of culture Local subcultures Ambiguous cultural configurations Integration consistency and consensus Differentiation variation and sub-culture conflict Fragmentation ambiguity, inconsistency and fluctuation
knowledge strategies
four knowledge management
strategies Leveraging communicate and transfer existing knowledge within the organization Expanding create and build on existing knowledge Appropriate strategy take new knowledge from external individuals and organizations and transfer this into your organization Probing strategy create new, propriatory knowledge from your internal organizational resources
A model of the variables that moderate differences
between domestic and international HRM
Variables that moderate differences
between domestic and international HRM 1. The complexity involved in operating in different countries and employing different national categories of employees 2. The cultural environment 3. The industry (or industries) with which the MNE is primarily involved 4. The extent of reliance of the MNE on its home-country domestic market 5. The attitudes of senior management
Strategic HRM in multinational
enterprises
truly international HRM require following steps
1. Recognize that ones own HRM reflects home culture assumptions and values. 2. Recognize that ones own peculiar ways are neither universally better nor worse than others - just different and likely to exhibit strengths and weaknesses, particularly abroad. 3. Recognize that organizations foreign subsidiaries may prefer other ways to manage people ways that are neither intrinsically better nor worse, but possibly more effective locally. 4. Headquarters willingness to acknowledge cultural differences and steps to make them discussable and therefore usable. 5. Build shared genuine belief that cross-cultural learning will result in more creative and effective ways of managing people.
Discussion Questions 1. What are the main similarities and differences between domestic and international HRM? 2. Define these terms: IHRM, PCN, HCN, and TCN. 3. Discuss two HR activities in which a MNE must engage that would not be required in a domestic environment. 4. Why is a greater degree of involvement in employees personal lives inevitable in many IHRM activities? 5. Discuss at least two of the variables that moderate differences between domestic and international HR practices
